The plan under discussion by the seven parties focuses on proposals to seek restoration of parliament, Nepal Communist Party-United Marxist and Leninist spokesman Pradip Nepal (NCP-UML) said.

"Our party is for reinstating parliament and the rest of the parties are in the process of agreeing to the common minimum programme," he told AFP.

"All the parties will meet soon to finalise it," he said.

Nepal Workers and Peasants' Party chairman Narayan Man Bijukchhe said all parties had agreed to call for restoring parliament rather than new elections.

Another NCP-UML senior official said restoration of parliament, dissolved in 2002, could pave the way for dialogue with Maoist rebels who have been battling to overthrow the monarchy and install a communist republic since 1996.

The efforts by the long divided parties to strike an alliance follow Gyanendra's dismissal of the government and takeover of power February 1.

Gyanendra said he took power to tackle the increasingly deadly revolt after fractious parties failed to contain it.

The common front would be made up of the Nepali Congress, Nepali Congress (Democratic), Nepal Communist Party-United Marxist and Leninist, People's Front Nepal, Nepal Workers and Peasants' Party, Nepal Sadbhawana Party-Anandadevi and United Left Front, Nepal said.

The other senior NCP-UML official, who did not wish to be named, said restoring parliament would pave the way for "an all-party government capable of holding peace talks with the rebels."

"Such a government will also explore the possibility of inviting the rebels to join the interim government to hold parliamentary elections or elections for a constituent assembly," the official said.

The Maoists have been calling for elections for a constituent assembly that would draft a new constitution and settle the political role of the king.

Meanwhile, India is keeping under constant review the issue of resuming arms supplies to Nepal, suspended since February when King Gyanendra seized power, a report said yesterday.

"The supply of arms to Nepal is under constant review," Foreign Minister Natwar Singh told The Hindu newspaper in an interview.

India is Nepal's biggest arms supplier.

"Given the nature of our very close relations with Nepal, we have to be extremely cautious and very patient. It's our hope and endeavour to see that normalcy returns," Singh added.